Skip to content
You can now search across every topic, entity and event.What's new
Data Centres: Boom and Backlash
8SEP

Fingrid warns 5 GW may not be built

1 min read
13:06UTC

Fingrid put Finnish data-centre projects holding signed connection agreements at nearly 5 GW on 18 August, then said in the same release that a signature does not guarantee build-out.

IndustryDeveloping
Key takeaway

Fingrid's 5 GW of signed agreements reserves grid capacity without committing anyone to build anything.

A signed connection agreement does not guarantee build-out or full-scale operation, Fingrid said on 18 August, in the same release that put Finnish data-centre projects holding signed agreements at nearly 5 GW of planned final combined capacity by mid-August, distribution-network projects included 1. Fingrid runs Finland's transmission grid, the high-voltage network that carries power between regions before it reaches local distribution companies.

A connection agreement is a contract for capacity at a future date rather than a working connection. Finland's operator added that capacity from its ongoing grid investments was already almost fully reserved in many areas. Those reservations hold grid capacity whether or not the buildings behind them go up, so the 5 GW measures intent that has reached contract stage and nothing further.

Ofgem answered the same problem with a price in Great Britain in late July . Fingrid answered it with a caveat, which tells a reader the queue is softer than its total suggests and leaves every reservation exactly where it stood. Neither device shortens a queue, and both are admissions that a grid operator cannot tell, from its own register, how much of the signed capacity will turn into load.

Deep Analysis

In plain English

Signing an agreement with the grid operator to get electricity in future is a bit like putting down a deposit on a house before you have a mortgage. It reserves your place, but it does not mean the house gets built. Fingrid is warning that its 5 GW total of signed agreements works the same way: some of those projects may never actually get built.

Deep Analysis
Root Causes

A signed connection agreement reserves grid capacity for a project without requiring the applicant to have secured planning permission, financing or a customer, so operators sign early and cheaply to hold a place in the queue while the harder approvals are still in progress.

Fingrid's caveat exists because the operator has watched headline queue totals get reported as committed capacity in the past, and is pre-empting that reading for its own 5 GW figure.

First Reported In

Update #14 · Brazil bill ties tax break to a water cap

Fingrid· 8 Sept 2026
Read original
Different Perspectives
NVIDIA
NVIDIA
NVIDIA told the Securities and Exchange Commission on 26 August it had signed memorandums aiming to mobilise over $500bn for buyers' equipment purchases, then said in the same filing the arrangements may not become definitive. It may also carry limited residual-value risk on the equipment itself.
IREN Limited
IREN Limited
IREN signed $2.4bn of financing on 25 August that only releases cash once its Mackenzie GPU servers are accepted, and only through 31 December 2026. A shipping delay from here now creates a funding problem as well as a revenue one.
Energy Commission (Malaysia)
Energy Commission (Malaysia)
Malaysia's Energy Commission recorded data centres at 9.3% of national power in one hot week in August, against a 7% year-to-date average, and is projecting 31% of peninsular demand by 2035. It wants roughly 9 GW of new gas-fired capacity by 2032 to cover the gap.
Economic Development Board and Infocomm Media Development Authority
Economic Development Board and Infocomm Media Development Authority
Singapore's EDB and IMDA rationed 200 MW across four operators on 21 August and followed with a tropical liquid-cooling standard six days later, fixing the terms before construction starts. The agencies will decide within 18 to 24 months whether to run a third call.
Legal Resources Centre
Legal Resources Centre
The Legal Resources Centre put the water and power draw of two approved Cape Town Equinix sites in public, at roughly 4.4 billion litres and 1.4 to 1.5 billion kWh a year, because the city and the operator would not. It wants a cumulative assessment before any more of the five approvals proceed.
Ministerio de Minas e Energia
Ministerio de Minas e Energia
Brazil's energy ministry published Redata's five conditions after the Senate passed PL 278/2026 on 1 September, betting a repeatable annual water test enforces cooling design better than a one-off approval. Redata now needs President Lula's signature before any of it takes effect.